Spotify is the largest music streaming service in the world. It has 70 million paying subscribers worldwide and offers 30 million plus songs to stream. They have recently filed paperwork to launch an IPO or Initial Public Offering.
Investopedia defines an Initial Public Offering as "the first time that the stock of a private company is offered to the public. IPOs are often issued by smaller, younger companies seeking capital to expand, but they can also be done by large privately owned companies looking to become publicly traded."
There are many pros and cons to a company going public so alot of deliberation goes into the decision. With Spotify being a major player in its industry and providing a paid service that so many people use it is a big deal to have them take this step. Many of you reading this may even be Spotify users.
The two articles below discuss the impact of an IPO on Spotify and why it's a big deal to the music industry in addition to why the way Spotify is going about this is not the norm.
Spotify AB will soon shine a bright light on just how big the holes are in our capital markets. Far more than just bankers should take note. Sometime, reportedly by the end of March, shares of the streaming music service will start trading for the first time.
When news spread last week that Spotify had filed papers to start selling its shares on the New York Stock exchange, listeners may very well have tuned out. Is there any phrase more antithetical to the rock'n'roll spirit than "initial public offering"?